Blackberry Comeback: Truth or Myth?

The latest devices launched by BlackBerry has created a buzz in the market which is swarming with the questions regarding the comeback of the Canadian mobile phone maker. Can BlackBerry win back the users that it has lost to Apple and Android? Does its new product line has enough fire to regain its old place?

The market trends are pointing towards a tentative yes.

New figures coming from the market for BlackBerry’s new OS show that the company is racing ahead of all Android phones combined to be placed at number two spot in race of phone providers in Canada. BlackBerry is only behind Apple and has captured 28 percent of market share. It was placed at second place, tied with Samsung, at 23 percent in February. Currently, BlackBerry holds 14 percent of UK market according to the latest figures coming from StatCounter Global, a statistics site.

The strong sales of Z10 and Q10 smartphones, launched by BlackBerry on its latest BlackBerry 10 operating system has compelled the analysts to boost the earnings and sales projections for the mobile manufacturer.

Mark Sue, RBC analyst, announced in a note to investors that he has increased the shipment projections to 3.5 million from earlier 2.75 million for the first quarter ending on July 1. He also projected that the second quarter would have 4 million phones shipped which will be a significant hike from earlier estimate of 3 million.

Recently, Wells Fargo analyst Maynard Um projected that earning would hit $0.32 a share for 2013-14. It must be noted that previous estimates suggested a loss of $0.07 per share. In a written statement, he has announced that there is ample potential for upside movement due to escalated expectations for BB10 units but they have resorted to conservative estimates.

These good news are a big relief for BlackBerry as they come after previous downgrades in the face of lower than expected demand for the new BB1o phones. Analysts are still cautious, keeping in mind that the competition is markedly fierce.

However, all is not good for BlackBerry as it has found itself in the middle of NSA scandal with The Guardian reporting that UK government spies successfully broke past its security regime. Documents apparently allege that the communications of officials on visit at UK for G20 summit in 2009 were intercepted by GCHQ intelligence agency. The intercepted communications included the breach of security on BlackBerrys of foreign delegates to peek into their phone calls and email messages.

In response to such reports, BlackBerry made a statement assuring its customers of providing the best available security to mobile communications. The statement said that the company is unable to comment on the reports alleging government spying on telecommunication traffic but it remains confident in the high quality of Blackberry’s mobile security systems.

Among all this turbulence, the investors will have to wait and watch till June 28 for the hard data to support analysts’ optimistic projections, when BlackBerry will release the earning figures for first quarter of 2013-14 fiscal year.

The latest devices launched by BlackBerry has created a buzz in the market which is swarming with the questions regarding the comeback of the Canadian[See the full post at: Blackberry Comeback: Truth or Myth? ]